QUARTERLY
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF
1934

For
the quarterly period ended April
30, 2006

or

[
]

TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF
1934

For
the transition period from _______ to
_______

Commission
File Number 333-66291

The
Doe Run Resources Corporation

(Exact
name of registrant as specified in its charter)

New
York

13-1255630

(State
or other jurisdiction of incorporation or organization)

(IRS
Employer Identification No.)

1801
Park 270 Drive, Suite 300

St.
Louis, Missouri

63146

(Address
of principal executive offices)

(Zip
Code)

(314)
453-7100

(Registrant’s
telephone number, including area
code)

Indicate
by check mark whether the registrant (1) has filed all reports required to
be
filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the
preceding 12 months (or for such shorter period that the registrant was required
to file such reports), and (2) has been subject to such filing requirements
for
the past 90 days.

[
]

Yes

[X]

No

Note:
The Registrant files pursuant to an indenture, but is not otherwise subject
to
the reporting requirements of Section 13 or 15(d).

Indicate
by check mark whether the registrant is a large accelerated filer, an
accelerated filer, or a non-accelerated filer. See definition of “accelerated
filer and large accelerated filer” in Rule 12b-2 of the Exchange Act. (Check
one):

[
]Larger accelerated filer

[
] Accelerated filer

[X]
Non-accelerated filer

Indicate
by check mark whether the registrant is a shell company (as defined in Rule
12b-2 of the Exchange Act).

[
]

Yes

[X]

No

Number
of
shares outstanding of each of the issuer’s classes of common stock, as of
October 19, 2006:

Common
stock, $.10 par value1,000
shares

EXPLANATORY
NOTE

The
Doe
Run Resources Corporation (the “Company”) is filing this Amendment No. 1 on Form
10-Q/A (the “Amended Filing”) to the Company’s Form 10-Q for the fiscal quarter
ended April 30, 2006, as filed with the Securities and Exchange Commission
on
August 7, 2006 (the “Original Filing”), for purpose of revising its disclosure
of gross margin on sales under the subheading “Results of Operations” in “Item
2. Management’s Discussion and Analysis of Financial Condition and Results of
Operations” to reflect all costs of sales, including depreciation, depletion and
amortization amounts attributable to cost of sales.

This
Amended Filing also revises the Condensed Consolidated Statements of Cash Flows
in “Item 1. Financial Statements” to reflect certain individual changes in the
Company’s assets and liabilities.

Additionally,
this Amended Filing clarifies the disclosure under “Item 4. Controls and
Procedures” by stating that the Company’s disclosure controls and procedures
were effective as of the date of the Company’s evaluation.

Finally,
this Amended Filing corrects certain typographical errors in the Original
Filing.

Except
as
described above, no other changes have been made to the Original Filing and
this
Amended Filing does not amend, update or change any other items or disclosures
in the Original Filing. This Amended Filing continues to speak as of the date
of
the Original Filing and the Company has not updated the disclosure in this
Amended Filing to speak to any later date.

authorized;
2,849 shares issued and outstanding as of April 30, 2006
and

October
31, 2005, liquidation and redemption value

30,276

28,495

Shareholder's
deficit:

Common
stock, $.10 par value per share, 1,667 shares authorized;

1,000
shares issued and outstanding

-

-

Accumulated
deficit

(65,644

)

(123,141

)

Accumulated
preferred stock dividends in excess of paid in capital

(5,038

)

(3,257

)

Accumulated
other comprehensive losses

(41,507

)

(41,507

)

Total
shareholder's deficit

(112,189

)

(167,905

)

Total
liabilities and shareholder's deficit

$

626,093

$

494,775

The
accompanying notes are an integral part of these condensed consolidated
financial statements.

THE
DOE RUN RESOURCES CORPORATION

Condensed
Consolidated Statements of Operations (unaudited)

(Dollars
in thousands)

Three
Months Ended

April
30,

Six
Months Ended

April
30,

2006

2005

2006

2005

Net
sales

$

380,221

$

247,716

$

694,345

$

483,698

Costs
and expenses:

Cost
of sales

306,960

219,328

570,347

417,331

Depreciation,
depletion and amortization

7,015

5,764

13,128

11,901

Selling,
general and administrative

15,461

11,759

28,568

22,686

Unrealized
gain on derivative financial instruments

(2,301

)

(463

)

(4,256

)

(1,261

)

Other

1,808

1,321

3,115

3,158

Total
costs and expenses

328,943

237,790

610,902

453,815

Income
from operations

51,278

10,007

83,443

29,883

Other
income (expense):

Interest
expense, net

(988

)

(3,314

)

(3,725

)

(6,755

)

Other,
net

579

(27

)

485

225

(409

)

(3,341

)

(3,240

)

(6,530

)

Income
before income tax expense

50,869

6,666

80,203

23,353

Income
tax expense

3,428

-

5,270

-

Net
income

$

47,441

$

6,666

$

74,933

$

23,353

Preferred
stock dividends

(891

)

(791

)

(1,781

)

(1,583

)

Net
income allocable to common shares

$

46,550

$

5,875

$

73,152

$

21,770

Total
comprehensive income

$

46,550

$

6,696

$

73,152

$

23,487

The
accompanying notes are an integral part of these condensed consolidated
financial statements.

THE
DOE RUN RESOURCES CORPORATION

Condensed
Consolidated Statements of Cash Flows (unaudited)

(Dollars
in thousands)

Six
Months Ended

April
30,

2006

2005

Cash
flows from operating activities:

Net
income

$

74,933

$

23,353

Adjustments
to reconcile net income to net cash

provided
by operating activities:

Depreciation,
depletion and amortization

13,128

11,901

Imputed
interest and amortization of deferred financing costs

307

346

Unrealized
gain on derivative financial instruments

(4,256

)

(1,261

)

Losses
from impairment and disposal of long-lived assets

793

1,989

Increase
(decrease) resulting from changes in:

Trade
receivables

(50,008

)

(10,130

)

Inventories

(61,862

)

(21,704

)

Prepaid
expenses and other current assets

(6,381

)

5,070

Accounts
payable

65,879

19,236

Accrued
liabilities

8,840

(565

)

Other
noncurrent assets and liabilities, net

(4,022

)

(1,033

)

Net
cash provided by operating activities

37,351

27,202

Cash
flows from investing activities:

Purchases
of property, plant and equipment

(23,131

)

(26,614

)

Net
proceeds from sale of investments

-

333

Net
cash used in investing activities

(23,131

)

(26,281

)

Cash
flows from financing activities:

Proceeds
from revolving loans

and
short-term borrowings, net

455

5,335

Proceeds
from long-term debt

10,000

-

Payments
on long-term debt

(20,990

)

(14,638

)

Payments
of financing costs

(925

)

-

Payments
of tax dividends

(2,333

)

(310

)

Net
cash used in financing activities

(13,793

)

(9,613

)

Net
increase (decrease) in cash

427

(8,692

)

Cash
at beginning of period

23,486

20,318

Cash
at end of period

$

23,913

$

11,626

The
accompanying notes are an integral part of these condensed consolidated
financial statements.

THE
DOE RUN RESOURCES CORPORATION

Notes
to Condensed Consolidated Financial Statements

(Dollars
in thousands)

(1)Summary
of Significant Accounting Policies

Unaudited
Interim Financial Statements

These
interim consolidated financial statements include the accounts of The Doe Run
Resources Corporation (“Doe Run”) and its subsidiaries, including Doe Run Peru
S.R.L. (“Doe Run Peru”, and together with Doe Run on a consolidated basis, the “
Company”). Doe Run’s issued and outstanding common stock is owned by a
subsidiary of The Renco Group, Inc. (“Renco”). In the opinion of management, the
interim consolidated financial statements contain all adjustments, consisting
of
normal recurring accruals, necessary to present fairly the consolidated
financial position as of April 30, 2006 and the results of operations for the
three and six-month periods ended April 30, 2006 and 2005. Interim periods
are
not necessarily indicative of results to be expected for the year.

Reclassifications

Certain
prior period balances have been reclassified in order to conform to the current
presentation.

(2)Financial
Condition

The
Company is highly leveraged and has significant commitments both in the U.S.
and
Peru for environmental matters and for Environmental Remediation and Management
Program (“PAMA”) expenditures, including the financial guarantees, that require
it to dedicate a substantial portion of cash flow from operations to the payment
of these obligations, which will reduce funds available for other business
purposes (see Note 7: Asset Retirement and Environmental Obligations). These
factors also increase the Company’s vulnerability to general adverse conditions,
limit the Company’s flexibility in planning for, or reacting to, changes in its
business and industry, and limit the Company’s ability to obtain financing
required to fund working capital and capital expenditures and for other general
corporate purposes. An unfavorable outcome to certain contingencies, discussed
below, would have a further adverse effect on the Company’s ability to meet its
obligations when due. The Company’s ability to meet these obligations is also
dependent upon future operating performance and financial results which are
subject to financial, economic, political, competitive and other factors
affecting Doe Run, many of which are beyond the Company’s control.

Metal
prices have risen dramatically over the past two fiscal years. Lead prices
increased from a London Metal Exchange (“LME”) settlement monthly average of
$911.40 per short metal ton in October 2005 to $1,061.80 per short metal ton
in
April 2006. The Company has benefited from this price increase in both its
lead
metal and lead concentrate sales.

The
consolidated financial statements have been prepared assuming the Company will
continue as a going concern. Doe Run Peru however has significant capital
requirements under environmental commitments and substantial contingencies
related to Peruvian taxes and has significant debt service obligations, each
of
which, if not satisfied, could result in a default under the Company’s credit
agreements and collectively raise substantial doubt about the Company’s ability
to continue as a going concern. Management believes that the price improvements
seen through fiscal year 2005 and in the first two quarters of fiscal year
2006,
the potential revenues and cash flow enhancements from the Company’s new ferrite
project in Peru and the approval by the Peruvian government of the application
to extend the PAMA requirement for the construction of the sulfuric acid plants,
will enable the Company to continue as a going concern. However, there can
be no
assurance that these actions will achieve the desired results.

Net
unused availability at April 30, 2006 under the Doe Run Revolving Credit
Facility was $34,689. Net unused availability at April 30, 2006 under the Doe
Run Peru Revolving Credit Facility was approximately $200. In addition to the
availability under its revolving credit facilities, the cash balance of Doe
Run
was $1,073 at April 30, 2006. The cash balance of Doe Run Peru was $22,840
at
April 30, 2006. Doe Run Peru has reached and maintained its maximum borrowing
level under the Doe Run Peru Revolving Credit Facility due in part to the higher
metal prices resulting in higher outlays for concentrate purchases and higher
VAT payments funded by cash from operations.

The
Doe
Run Revolving Credit Facility expires on August 29, 2008. The Doe Run Peru
Revolving Credit Facility expires on September 22, 2006 and will require
negotiations to extend its terms. There can be no assurance that the Company
will be successful in extending the existing credit agreement or negotiating
a
new credit agreement, or if it is successful, that the extended or new credit
agreement would be at terms that are favorable to the Company.

Any
default under the requirements of the PAMA could result in a default under
the
Doe Run Peru Revolving Credit Facility. A default under the requirements of
the
Doe Run Peru Revolving Credit Facility results in defaults under the Doe Run
Revolving Credit Facility and the indenture governing the bonds.

(3)Inventories

Inventories
consist of the following:

April
30,

October
31,

2006

2005

Finished
metals and concentrates

$

32,066

$

18,461

Metals
and concentrates in process

101,843

55,681

Materials,
supplies and repair parts

33,587

31,492

$

167,496

$

105,634

Materials,
supplies and repair parts are stated net of reserves for obsolescence of
approximately $4,999 and $5,389 at April 30, 2006 and October 31, 2005,
respectively.

(4)Income
Taxes

Doe
Run
Cayman is subject to the regulations of the Cayman Islands, which currently
have
no corporate income or capital gains tax. Doe Run Cayman’s subsidiaries located
in Peru are subject to Peruvian taxation. The statutory income tax rate in
Peru
is 30%. Doe Run Peru has obtained a ten-year tax stabilization agreement with
the Peruvian government, which provides for Peruvian taxation based on tax
statutes and regulations prevailing on November 6, 1997, beginning with the
Peruvian tax year ending on December 31, 1997 through December 31,
2006.

On
December 30, 1997, Doe Run Peru signed a Contract of Guarantees and Measures
to
Promote Investments (“Contract”) with the government of Peru. The
Contract, which has been modified various times through 2006, committed Doe
Run
Peru to making certain investments related to the improvements of its facilities
in order to receive certain tax benefits. The Contract provided that if
the investments were completed according to the schedule by December 31, 2006,
Doe Run Peru would receive an additional tax stability agreement covering the
period beginning January 1, 2007 and ending December 31, 2021. Doe Run
Peru will be unable to complete the required investments and, therefore,
requested an extension of the time, from the Ministry of Energy and Mines
(“MEM”), for these investments that would coincide with the extended period of
compliance for the PAMA. MEM denied the request. As a result, Doe Run Peru
will not receive the benefits of the additional tax stabilization
agreement.

Doe
Run
Peru has received income tax assessments from Peru’s tax authority (“SUNAT”) for
tax years 1998 through 2001. The assessments primarily relate to Doe Run Peru’s
income tax treatment of the December 1997 merger of Metaloroya S.A. into Doe
Run
Peru, which was purchased by Doe Run Peru in October 1997, and its effects
on
subsequent years’ taxable income. Under the assessment by SUNAT, the tax basis
of Doe Run Peru’s fixed assets acquired would decrease, resulting in lower tax
depreciation expense than originally claimed. The assessments of years 1999
through 2001 also relate to the disallowance of the deduction of interest paid,
the offsetting of losses on derivatives executed in the U.S. and some leaseback
and leasing operations. The estimated assessed amount consisting of additional
income taxes due, penalties and interest as of April 30, 2006 totals
approximately $121,100. The Company estimates that the effect of a similar
assessment for tax years after 2001 would be approximately $32,900. Furthermore,
Doe Run Peru would also be required to make additional workers’ profit sharing
payments equal to 8% of the increase in taxable income generated by the changes
discussed above, or approximately $11,300, for calendar years 1998 through
2005.

Doe
Run
Peru has also received Value Added Tax (“VAT”) assessments for the tax years
1999 through 2001 and for the period from January through July 2004. The
assessments primarily relate to Doe Run Peru’s exports with holding certificates
and differences in a tax credit application. The total assessment for these
periods, calculated with penalties and interest as of April 30, 2006 was
approximately $48,100. SUNAT offset the amount assessed for 2004 of
approximately $2,300 against Doe Run Peru’s VAT receivable balance from July of
2004. Future VAT reimbursements cannot be used to offset the assessment by
SUNAT. The Company discontinued the use of holding certificates for exports
in
June of 2004. The Company estimates expected additional assessments related
to
VAT for tax years 2002 and 2003, calculated with penalties and interest as
of
April 30, 2006 to total approximately $22,400 in regard to its exports with
holding certificates.

Management
of the Company believes that in each case Doe Run Peru has followed the
applicable Peruvian tax statutes and intends to pursue all available
administrative and judicial appeals. Doe Run Peru is not required to make any
payments pending the administrative appeal process. If Doe Run Peru is not
successful in the administrative appeal processes and were to appeal in the
judicial system, some type of financial assurance would be required. No amounts
have been accrued as liabilities related to these actions.

For
the
past several years, Doe Run Peru has generated net losses from operations that
according to tax law may be used to offset taxable income in the future. The
Company expects to utilize all of Doe Run Peru’s net operating loss
carryforwards in the current fiscal year. As a result, Doe Run Peru has recorded
$5,270 of income tax expense for the first two quarters of 2006.

Pursuant
to the Company’s tax sharing agreement with Renco, a tax dividend is payable to
Renco for federal and state income taxes that would be assessed if the Company
was a C corporation. Tax dividends payable to Renco of $15,487 and $384 were
reflected in the Company’s balance sheets at April 30, 2006 and October 31,
2005, respectively. The dividend payable at October 31, 2005 of $384 was paid
in
the second quarter of 2006 along with the tax dividend for the first quarter
of
2006 of $1,949. The Company paid $12,842 of the dividend payable at April 30,
2006 in the third quarter of 2006 and the remaining $2,645 will be paid during
the fourth quarter of 2006.

(5)Employee
Benefits

Defined
Benefit Plans

Net
periodic benefit cost is comprised of the following:

Three
Months Ended

Six
Months Ended

April
30,

April
30,

2006

2005

2006

2005

Service
cost

$

(226

)

$

551

$

-

$

1,097

Interest
cost on projected benefit obligation

2,577

1,670

3,412

3,325

Expected
return on assets

(2,426

)

(1,435

)

(3,166

)

(2,858

)

Net
amortization and deferral of unrecognized net losses

142

714

666

1,422

Net
periodic benefit cost

$

67

$

1,500

$

912

$

2,986

The
Company is required to make total contributions of $10,082 in 2006, of which
$4,317 had been paid as of April 30, 2006.

Net
Worth Appreciation Agreements

Certain
current and former employees are parties to net worth agreements with Doe Run,
pursuant to which, upon termination of each person’s employment with Doe Run,
they are entitled to receive a fixed percentage of the increase in the net
worth
of the Company, as defined in such agreement, from a base date until the end of
the fiscal quarter preceding the date of his termination or in accordance with
the terms of the individual agreements. Such amounts are payable without
interest in 40 equal quarterly installments, commencing three months after
the
termination of each person’s employment or in accordance with the terms of the
individual agreements, and at three month intervals thereafter. The net worth
appreciation agreements also provide that, in the event of payment of a
dividend, other than tax dividends paid in accordance with the Company’s tax
sharing agreement, or sale of the Company, the active participants will be
entitled to receive a percentage of the dividend or the net proceeds of the
sale
equal to their maximum percentages under the agreements. The Company recorded
$2,503 in expense during the first two quarters of 2006.

(6)Segment
Information

The
Company’s operating segments are separately managed business units that are
distinguished by products, location and production processes. The primary lead
segment includes integrated mining, milling and smelting operations located
in
Missouri. The recycling operation segment, located in Missouri, recycles
lead-bearing materials, primarily spent batteries. The fabricated products
segment, located in Washington and Arizona, produces value-added lead products.
Doe Run Peru produces an extensive product mix of non-ferrous and precious
metals.

Operating
Segments - Revenues

Three
Months Ended

April
30,

Six
Months Ended

April
30,

2006

2005

2006

2005

Revenues
from external customers:

Doe
Run Peru

$

247,673

$

158,316

$

450,365

$

306,701

Primary
lead

101,094

65,143

183,868

129,080

Recycling
operation

22,672

22,432

46,760

40,998

Fabricated
products

4,030

3,386

7,393

7,201

Total

375,469

249,277

688,386

483,980

Revenues
from other operating segments: (1)

Doe
Run Peru

6,091

-

12,331

2,724

Primary
lead

397

209

1,076

711

Recycling
operation

100

82

182

180

Total

6,588

291

13,589

3,615

Total
reportable segments

382,057

249,568

701,975

487,595

Metal
sales not attributed to operating segments

6,982

(1

)

12,126

2,520

Realized
losses on derivative contracts

(2,230

)

(1,560

)

(6,167

)

(2,802

)

Intersegment
eliminations

(6,588

)

(291

)

(13,589

)

(3,615

)

Total
revenues

$

380,221

$

247,716

$

694,345

$

483,698

(1)

Transactions
between segments consist of metal sales recorded based on sales contracts
that are negotiated between segments on terms that management feels
are
similar to those that would be negotiated between unrelated
parties.

The
measure of segment profit and loss used by the Company is earnings of the
segment before interest, taxes, depletion, depreciation and amortization
(“EBITDA”), as adjusted to exclude losses from impairment and disposal of
long-lived assets and unrealized gains (losses) on derivatives (“Adjusted
EBITDA”). Consolidated Adjusted EBITDA also excludes accretion expense under
Statement of Financial Accounting Standards No. 143, Asset
Retirement Obligations
adopted
November 1, 2002.

Operating
Segments - Adjusted EBITDA

Three
Months Ended

April
30,

Six
Months Ended

April
30,

2006

2005

2006

2005

Doe
Run Peru

$

21,483

$

7,238

$

33,607

$

15,714

Primary
lead

44,797

15,168

76,493

37,686

Recycling
operation

3,328

3,957

7,507

7,629

Fabricated
products

836

676

1,141

1,149

Total
reportable segments

70,444

27,039

118,748

62,178

Realized
losses on derivatives

(2,230

)

(1,560

)

(6,167

)

(2,802

)

Other
revenues and expenses (1)

(1,229

)

(2,084

)

(2,191

)

(2,793

)

Corporate
selling, general and administrative expenses

(9,298

)

(6,856

)

(16,011

)

(13,111

)

Intersegment
eliminations

(44

)

(12

)

(3

)

13

Consolidated
adjusted EBITDA

57,643

16,527

94,376

43,485

Depreciation,
depletion and amortization

(7,015

)

(5,764

)

(13,128

)

(11,901

)

Interest
expense, net

(988

)

(3,314

)

(3,725

)

(6,755

)

Unrealized
gain on derivatives

2,301

463

4,256

1,261

Losses
from impairment and disposal of long-lived assets

(668

)

(779

)

(793

)

(1,989

)

Asset
retirement obligation accretion expense

(404

)

(374

)

(783

)

(748

)

Other

-

(93

)

-

-

Income
before income taxes

$

50,869

$

6,666

$

80,203

$

23,353

(1)

Other
revenues and expenses consist of the profit on metal sales not attributed
to operating segments and expenses not allocated to operating segments,
including environmental expenses relating to historic operations
of $542
and $803 for the three and six months ended April 30, 2006, respectively
and $2,877 for the three and six months ended April 30,
2005.

(7)Asset
Retirement and Environmental Obligations

The
Company is subject to numerous federal, state, local and other government
environmental laws and regulations governing, among other things, air emissions,
wastewater discharges, solid and hazardous waste treatment, storage and disposal
and remediation of releases of hazardous substances. The Company’s facilities
are located on sites that have been used for heavy industrial purposes for
decades and may require remediation. The Company has made and intends to
continue making the necessary expenditures for environmental remediation and
compliance with environmental laws and regulations. Environmental laws and
regulations may become more stringent in the future, which could increase costs
of compliance.

Asset
Retirement Obligations

Asset
retirement obligations (“AROs”) are recognized as liabilities when incurred,
with the initial measurement at fair value. These liabilities will be increased
to full value over time through charges of accretion to operating expense.
In
addition, an asset retirement cost is capitalized as part of the related asset’s
carrying value and will be depreciated over the asset’s useful life. Changes in
the ARO liability resulting from revisions to the timing or the amount of the
original estimate of undiscounted cash flows shall be recognized as an increase
or a decrease in the carrying amount of the liability for an ARO and the related
asset retirement cost capitalized as part of the carrying amount of the related
long-lived asset.

Doe
Run’s
mines and related processing facilities are governed by various agencies that
have established minimum standards for reclamation. Doe Run’s primary smelter
slag produced by and stored at the primary smelter in Herculaneum, Missouri,
is
currently exempt from hazardous waste regulation under the Resource Conservation
and Recovery Act of 1976, as amended (“RCRA”), but is subject to a state closure
permit, which requires Doe Run to contain and cover the pile upon cessation
of
operations. Doe Run’s mining and milling operations are subject to

Missouri
mine waste closure permit requirements and
lease agreements that require Doe Run to reclaim surface areas, including
remediation of mining waste disposal areas, and to perform closure activities
underground. These activities, which tend to be site specific, generally include
costs for earthwork, revegetation, water treatment and demolition. Closure
activities may be performed over time.

Doe
Run
has a RCRA permit addressing the closure of portions of its recycling operation.
The majority of the cost will arise from removing hazardous materials from
the
facility. No ARO liability or related asset cost has been recorded because
the
fair value of the obligation cannot be determined due to the indeterminate
timing. The cost of closure, based on third party estimates for bonding
purposes, is approximately $3,200. The life of the operation is considered
indeterminable because there is not currently a cost-effective alternative
to
the lead acid batteries and because battery manufacturers are required to
recycle the batteries.

Mine
Closure Law No. 28090 (“Law”) became effective in Peru as of October 15, 2005.
It applies to smelters and mines. The Law establishes the obligations and
procedures that titleholders of mining activities must follow, including a
financial guarantee for environmental issues. Doe Run Peru must
submit a mine closure plan to the MEM by August 17, 2006 which must include
a
description of the remediation measures to be done, along with their cost and
timing, and the expected amount of the financial guarantee. Doe Run Peru has
hired a technical mining consultant to prepare the mine closure plans for
Cobriza and La Oroya to insure that they will comply with the technical and
legal requirements. The financial guarantee will not be known until the final
mine closure plan is approved therefore, the guarantee is estimated to be
established in January of 2007.

Doe
Run
Peru has AROs at its Cobriza mine related to the costs associated with closing
the mine openings and covering acid rock. Doe Run Peru is also responsible
for
the eventual covering and revegetation of mixed lead and copper slag also stored
in Huanchan, an area a short distance from the La Oroya smelter where the slag
is currently stored.

The
Company’s total recorded liabilities for AROs were approximately $15,945 and
$15,188 as of April 30, 2006 and October 31, 2005, respectively.

Environmental
Remediation - Domestic Operations

The
Company had recorded liabilities of approximately $15,000 and $20,000 related
to
remediation obligations as of April 30, 2006 and October 31, 2005,
respectively.

Doe
Run
is subject to an Administrative Order on Consent (“AOC”) with the U.S.
Environmental Protection Agency (“ U.S. EPA”), effective May 29, 2001, to study
and address issues related to the slag pile, plant property, community soils
adjacent to the primary smelter in Herculaneum, Missouri, elevated blood lead
levels in the community and lead releases from the plant. This AOC was modified
effective on May 20, 2004 which addressed the technical requirements concerning
the slag pile design and construction along with adjustments to the remediation
schedule. At April 30, 2006 the estimated remaining cost of remediating the
soils of this community was approximately $434.

Doe
Run
signed a settlement agreement with the State of Missouri on April 26, 2002,
whereby it agreed to offer to purchase approximately 160 residential properties
in an area close to the smelter if the owner requests such an offer. Offers
totaling $10,300 have been accepted and closed. The remaining offers have
expired except for a few with pending closing dates or special arrangements
for
a total of $138. The formal program under the agreement is now essentially
completed.

The
Company’s statements of operations reflect losses from impairment or retirement
of long-lived assets primarily related to the residential properties owned
in
Herculaneum, as it is probable that the cost of the properties will not be
recovered through future cash flows.

Doe
Run
has received notice that it is a potentially responsible party (“PRP”) subject
to liability under The Comprehensive Environmental Response, Compensation and
Liability Act of 1980, as amended (“CERCLA”), at the following sites: six sites
in St. Francois County, Missouri, including the Big River Mine Tailings site,
the Bonne Terre site, the Federal site, the National site, the Rivermines site
and the Leadwood site; sites comprising areas along roads

in
Iron, Dent and Reynolds counties in Missouri; the
Oronogo-Durenweg site in Jasper County, Missouri; the Cherokee County site
in
Cherokee County, Kansas; the Tar Creek site in Ottawa County, Oklahoma; the
Block “P” site in Cascade County and Judith County, Montana; and the Missouri
Electric Works site in Cape Girardeau, Missouri. There are two additional sites
in St. Francois County for which the U.S. EPA has indicated it will issue
notice. CERCLA provides for strict and, in certain circumstances, joint and
several liability for response costs and natural resource damages. The Company’s
estimate of the cost of the remediation of these sites, including the two
additional sites in St. Francois County, is included in the total liability
for
remediation obligations, which the Company believes is adequate based on its
investigations to date. However, depending upon the types of remediation
required and certain other factors, additional costs at these sites,
individually or collectively, could have a material adverse effect on the
results of operations, financial condition and liquidity of the
Company.

In
addition to being asked to conduct remediation at the above sites, the U.S.
EPA
may also seek reimbursement from Doe Run for response actions it has conducted
at these sites. The U.S. Government has advised PRP’s at the Tar Creek site,
including Doe Run, that it will seek reimbursement for approximately $125
million of such costs. Given legal issues about Doe Run’s responsibility for
activities of a former subsidiary, the fact that the former subsidiary’s
activities at the site were localized and small (less than 1% of the waste),
and
the major involvement at the site of the U.S. Government through the Bureau
of
Land Management’s and the Bureau of Indian Affairs’ management of mineral
leasing at the site, the Company is unable to estimate the expected outcome
of
any such potential claim.

In
February 2004 the U.S. Department of Agriculture issued a Unilateral
Administrative Order (“UAO”) ordering certain remediation activities by Doe Run
at the Block “P” mill site in Montana. Doe Run has requested that other parties
be added to the order. Doe Run will seek reimbursement from the U.S. Government
and these other parties. The final remediation was essentially completed as
of
October 31, 2005.

Doe
Run
has completed an Engineering Evaluation/Cost Analysis (“EE/CA”) for the Bonne
Terre site and has signed two AOCs to conduct removal actions on the west and
east portions of the site. Work is completed on the west Bonne Terre site and
is
nearly finished on the east site with completion expected in the summer of
2006.

Doe
Run
has completed an EE/CA for the Rivermines site and, while unable to accept
certain financial assurance provisions of a proposed AOC, has agreed to conduct
a removal action at the site under a UAO. Work has commenced on the removal
action. The EPA accelerated the timeframe to complete the majority of the
remediation effort by the summer of 2006.

Doe
Run
is subject to an AOC with the U.S. EPA to remediate the Big River Mine Tailings
site. The remediation work required by the AOC has been substantially completed
and will continue with revegetation and ongoing monitoring and maintenance
activities.

Doe
Run
has also signed AOCs to perform an EE/CA on each of the National and Leadwood
sites for remediation of mine waste areas. The National EE/CA was completed
by
the PRPs and was submitted to the U.S. EPA for approval. The U.S. EPA then
had
two EE/CA’s prepared, the last of which was accepted by them. The cost of their
remedy is higher than that estimated by the EE/CA prepared by Doe Run. On July
6, 2006, the U.S. EPA issued a unilateral administrative order to four parties,
the generating company and three landowners including Doe Run. Doe Run is
negotiating its share with the generating PRP. The Leadwood EE/CA has been
modified and submitted to the U.S. EPA for approval and it is contemplated
that
a unilateral order will be issued during the fiscal year to conduct the work.
We
would utilize Doe Run’s internal workforce which is about to complete work at
Elvins-Rivermines. In addition, Doe Run has signed an AOC with the U.S. EPA
to
conduct a Remedial Investigation/Feasibility Study (“RI/FS”) to assess potential
off-site impacts of these site operations on groundwater, residential soils,
several creeks and a river and the need for related remediation. The initial
draft of the RI/FS was submitted in early March of 2002. Doe Run signed an
order
to conduct interim measures, which consisted of blood lead testing of young
children, residential soil sampling and limited soil remediation as indicated
by
the testing and sampling results, which was terminated and replaced by an AOC
to
conduct certain additional soil remediation in the area and has included its
best estimate of these efforts in its recorded liabilities. The Company believes
the recorded liabilities related to these sites are adequate. However, should
remediation goals or areas change, requiring substantially increased measures,
there can be no assurance that the recorded liabilities would be
adequate.

In
March
of 2004, Doe Run received notice that it is a PRP subject to liability under
CERCLA for contamination along roads in Iron, Dent and Reynolds counties in
Missouri, along with a number of mining companies involved in the transportation
of concentrates. After sampling approximately 750 houses by the U.S. EPA and
the
Missouri Department of Natural Resources, approximately 150 houses were
identified as potentially requiring some level of remediation. Doe Run and
four
other mining companies have signed an AOC to conduct soil remediation at
approximately 40 of these houses. The five companies have completed a mediation
session concerning the allocation of costs and, subject to resolving certain
outstanding issues, expect to modify the agreement between them resolving the
allocation of the completed work. They are also expected to sign an agreement
to
resolve the management and expenditures regarding future work on this project.
Also, in regard to potential contamination from transportation activities in
and
near the City of Viburnum, Doe Run has signed an AOC to conduct sampling and
prepare a Preliminary Assessment/Site Inspection report. The draft of that
work
has been completed and submitted.

Doe
Run
has been advised that the U.S. EPA is considering taking certain response
actions at a mine site in Madison County, Missouri known as the Mine LaMotte
Site. Doe Run and the owner of the other 50% share of stock in the company
that
mined the site have signed an AOC to conduct an RI/FS at the site. This site
is
substantially smaller than the sites in St. Francois County where the Company
has been named a PRP, and the potential issues are less complex. Doe Run has
also been advised that remediation is required at a related small satellite
mine
site. After conducting an investigation, Doe Run has determined that it was
not
involved in operations at the satellite site, but further review will be
required before a determination can be made as to whether it has any liability
at the main site. At this time, based on preliminary information and an
inspection of the sites, management does not believe that any future action
will
result in a material adverse impact to the results of operations, financial
condition or liquidity of the Company.

Doe
Run’s
recycling facility is subject to corrective action requirements under RCRA
as a
result of a storage permit for certain wastes initially issued in 1989. This
will involve remediation of solid waste management units at the site, and it
is
expected that the plan for corrective action will be approved in fiscal 2006.
The Company’s estimate of the cost of this corrective action is $1,000. While
management believes that recorded liabilities are adequate based on expectations
of the closure plan requirements, regulators could require that additional
measures be included in the finalized plan, which could change the estimate
of
the costs for corrective action.

Environmental
Remediation - Foreign Operations

Doe
Run
Peru’s La Oroya operations historically and currently exceed some of the
applicable maximum permissible limits established by MEM pertaining to air
emissions and wastewater effluents quality. Prior to our acquisition of La
Oroya, Metaloroya S.A., the former owner, a subsidiary of Empresa Minera del
Centro del Peru S.A., which we refer to as Centromin, received approval from
the
Peruvian Government for a PAMA. The PAMA was designed to achieve compliance
with
MEM’s air and wastewater limits. It consisted of an environmental impact
analysis, monitoring plan and data mitigation measures and a closure plan.
The
PAMA also set forth the actions and corresponding annual investments a company
agrees to undertake in order to achieve compliance with the maximum permissible
limits prior to expiration of the PAMA (ten years for smelters, such as Doe
Run
Peru’s operations in La Oroya, and five years for mining operations, such as
Cobriza). The PAMA projects, which are more fully discussed below, were designed
to achieve compliance with these requirements.

On
December 29, 2004, the Peruvian Government issued a Supreme Decree No.
046-2004-EM (“Supreme Decree”), which recognized that exceptional circumstances
may justify an extension of the time to complete one or more projects within
the
scope of a PAMA. Since Doe Run Peru expected that it would not be able to comply
with the spending requirements of La Oroya’s PAMA investment schedule by the end
of calendar year 2006 with respect to certain projects, Doe Run Peru applied
for
an extension on December 20, 2005.

On
May
29, 2006, MEM approved the extension of certain PAMA projects through October
31, 2009 (the “Modified PAMA”). Pursuant to the terms of the Modified PAMA, Doe
Run Peru is now required to complete the acid plant projects for the lead
circuit and the copper circuit by September 30, 2008 and October 31, 2009,
respectively and Doe Run Peru remains obligated under the original PAMA to
implement the following projects at its La Oroya smelter by December 31,
2006:

§Upgrade
the acid plant for the zinc circuit;

§Construct
a treatment plant for the copper refinery effluent;

§Construct
an industrial wastewater treatment plant for the smelter and
refinery;

The
Modified PAMA also requires Doe Run Peru to comply with certain special measures
not previously required. These measures include, but are not limited to,
implementation of projects to reduce stack and fugitive emissions which are
designed to meet certain air quality objectives, a continuing improvement
provision that provides for additional pollution controls to address the
shortfalls in meeting objectives or to further reduce risks and certain measures
regarding protection of public health, including, among others, actions for
the
reduction of lead in blood levels and special health programs for children
and
expectant women.

MEM
has
also required that the cost of a planned replacement of the oxy-fuel
reverberatory furnace with a submerged lanced reactor furnace that will reduce
gas volume while enriching sulfurous gas feed to the copper circuit sulfuric
acid plant be included as part of the cost of the Modified PAMA acid plant
projects. The estimated cost of this reactor furnace is $57,000, which brings
the total remaining investment needed to build the sulfuric acid plants to
approximately $152,590.

Additional
PAMA projects required for fiscal year 2006 include an upgrade of the
ventilation system in the Sinter plant, completion of the enclosure work around
the lead and dross furnace, the enclosure of the anode residue plant along
with
the elimination of its nitrous gases, and the reduction of fugitive emissions
from the copper and lead beds. The total cost of the currently remaining
Modified PAMA projects as f April 30, 2006 was approximately $175,000 of which
$31,500 remains to be spent in the 2006 calendar year.

Doe
Run
Peru’s ability to complete the required projects by the specific deadlines
depends in large part upon the availability of sufficient funds. Doe Run Peru
believes that sufficient funds will be available on a timely basis, but the
availability of sufficient funds is largely dependent upon the results of its
business operations and the possibility of additional financing; therefore,
there can be no assurance that sufficient funds will be available for these
projects.

Consistent
with the requirements of the Supreme Decree providing for the possibility of
PAMA extensions, in addition to other terms and conditions, the Modified PAMA
contains two separate financial security arrangements to ensure that Doe Run
Peru fulfills its statutory obligation to complete the Modified PAMA
projects.

First,
Doe Run Peru has established an environmental trust account with Scotiabank
Peru
into which receipts from sales are required to be remitted directly in an amount
to have cash available sufficient to pay the expenditures estimated to be
incurred in each subsequent month by Doe Run Peru in complying with the Modified
PAMA. Second, Doe Run Peru has provided to MEM a bank letter of guarantee in
the
amount of $28,641 (an amount estimated to be 20% of the projected cost of the
Modified PAMA projects to be spent after 2006). Doe Run Peru deposited such
amount with Standard Chartered Bank which has in turn provided for the issuance
to MEM of the necessary bank letter of guarantee relying solely upon the funds
so deposited. Doe Run Peru has amended the Doe Run Peru Revolving Credit
Facility to allow for these arrangements.

Although
not contemplated by the Supreme Decree providing for the possibility of PAMA
extensions, as a condition of granting the Modified PAMA, MEM has provided
that
Doe Run Peru could lose the benefit of the extension if Doe Run Peru makes
any
payments to any shareholder or affiliate, which could affect the full and
satisfactory compliance with the Modified PAMA obligations. This provision
has
not been agreed to by Doe Run or Doe Run Peru but was imposed under applicable
law over their objection. Doe Run Peru was required, however, to provide a
bank
letter of guarantee in the amount of $4,000 which may be drawn upon to fund
Modified PAMA projects if Doe Run Peru makes any payments to any shareholder
or
affiliate. Doe Run Peru satisfied this requirement

by
depositing such amount with Standard Chartered Bank
which has in turn provided for the issuance to MEM of the necessary bank letter
of guarantee relying solely upon the funds so deposited.

Separately,
Renco has confirmed to MEM that Renco understands that Doe Run Peru could lose
the benefit of the extension if Doe Run Peru makes any payments to any
shareholder or affiliate which could affect the full and satisfactory compliance
with Doe Run Peru’s Modified PAMA obligations and Renco has stated that Renco
has no intention of causing, and will not do anything to cause, Doe Run Peru
to
make any such payment.

In
connection with its negotiations with MEM regarding the Modified PAMA, Doe
Run
voluntarily agreed to extend the maturity of Doe Run Peru’s $139,063
intercompany note payable to Doe Run until such time as the Modified PAMA has
been completed.

No
assurance can be given that implementation of the projects under the Modified
PAMA is feasible or that their implementation will achieve compliance with
the
applicable legal requirements by the end of the Modified PAMA period. The
Peruvian Government may, in the future, require compliance with additional
environmental regulations that could adversely affect Doe Run Peru’s business,
financial condition and results of operations, as well as their ability to
comply with the Modified PAMA. After expiration of the Modified PAMA, Doe Run
Peru must comply with all applicable standards and requirements.

The
Cobriza mine has a separate PAMA in which Doe Run Peru committed to complete
projects to manage tailings, mine drainage, sewage and garbage. Doe Run Peru
completed its own PAMA requirements with respect to Cobriza in June of 2004
and
is in compliance with emissions standards required by this PAMA.

In
addition to its PAMA obligations, Doe Run Peru is responsible for the
remediation costs relating to the zinc ferrite disposal site at La Oroya. The
current closure plan provides for encapsulating the ferrite residues in place
in
Huanchan, an area a short distance from the smelter where they are currently
stored, for which an environmental liability of $1,600 has been recorded as
of
April 30, 2006 and October 31, 2005.

Under
the
purchase agreement related to the acquisition of the La Oroya assets in October
of 1997, Centromin, the prior owner of the La Oroya smelter and Cobriza mine,
agreed to indemnify Doe Run Peru against environmental liability arising out
of
its prior operations and their apportioned share of any complaint related to
emissions. Performance of the indemnity has been guaranteed by the Peruvian
Government through the enactment of the Supreme Decree No. 042-97-PCM. However,
there can be no assurance that Centromin will satisfy its environmental
obligation and investment requirements or that the guarantee will be honored.
Any failure by Centromin to satisfy its environmental obligations could
adversely affect Doe Run Peru’s business, financial condition and results of
operations.

Environmental
Remediation -Consolidated

The
Company believes its reserves for domestic and foreign environmental, mine
closure and reclamation matters are adequate, based on the information currently
available. Depending upon the type and extent of activities required, revisions
to management’s estimates of costs to perform these activities are reasonably
possible in the near term. Therefore, there can be no assurance that additional
costs, both individually and in the aggregate, would not have a material adverse
effect on the results of operations, financial condition and liquidity of the
Company.

(8)Litigation

Doe
Run
is a defendant in 29 lawsuits alleging certain damages stemming from the
operations at the Herculaneum primary smelter. Three of these cases are class
action lawsuits. In two cases, the plaintiffs seek to have certified a class
of
property owners in a certain section of Herculaneum, alleging that property
values have been damaged due to the operations of the smelter. In another case,
plaintiffs seek to have certified a class of children who lived in Herculaneum
during a period of time when they were less than six years old and children
born
to mothers who lived in Herculaneum during their pregnancies. The remedy sought
is medical monitoring for the class. Twenty-six of the cases are personal injury
actions by 161 individuals who allege damages from the effects of lead due
to
operations at the smelter. Punitive damages also are being sought in each case.
Doe Run is also a defendant in a wrongful death action concerning a drowning
in
the City of Herculaneum.

A
resident of Herculaneum has claimed personal injuries allegedly resulting from
exposure to emissions from the smelter. No suit has yet been filed in this
matter.

Doe
Run
is a defendant in 17 lawsuits alleging certain damages from discontinued mine
facilities in St. Francois County. Four of the cases are class action lawsuits.
The first case seeks to have certified a class consisting of property owners
in
Bonne Terre, Missouri, alleging that property values have been damaged due
to
the tailings from the discontinued operations. In the second case plaintiffs
seek to have certified a class of children who lived, went to school or day
care
in Bonne Terre, or whose mothers lived in Bonne Terre during their pregnancies.
The third and fourth cases are class actions for property damage and medical
monitoring concerning alleged damages caused by chat, tailings and related
operations in six areas in St. Francois County. The remainder of the cases
allege personal injury to 28 individuals who were exposed to lead in St.
Francois County.

Doe
Run
is a defendant in a lawsuit by the BNSF Railway Company, who has alleged that
Doe Run and other companies associated with lead mining operations in Missouri
are responsible for property damage at certain rail yards and for contribution
and indemnity for costs incurred by BNSF associated with settlement by BNSF
of
lead exposure cases. Given the early stage of this case, the Company is unable
at this time to estimate the expected outcome and any final costs of this
action.

Doe
Run
is a defendant in five lawsuits alleging certain damages from past mining
operations in Ottawa County, Oklahoma. Three of these suits are class
actions alleging personal injury and property damage in Picher and Quapaw,
Oklahoma. One lawsuit, a consolidation of five suits, alleges injury to
seven children living in Picher, Oklahoma. One lawsuit, a consolidation of
two suits, alleges injury to 42 children living in Ottawa County.

Doe
Run,
with several other defendants, has been named in four cases in Maryland but
has
not yet been joined as a defendant in any of these cases. These suits seek
damages, alleging personal injuries as a result of lead poisoning from exposure
to lead paint and tetraethyl lead dust. The suits seek punitive damages. Doe
Run
was dismissed from two similar cases in which it was joined as a defendant.
Until Doe Run is actually joined as a defendant in one or more of these cases,
material liability from these cases is considered remote.

Doe
Run
is currently a defendant in three asbestos injury suits filed in Madison County,
Illinois, each alleging that a worker was exposed to asbestos at the premises
of
the St. Joe Minerals Corporation. However, Doe Run has not been properly served
in one of these cases. Doe Run has reached a tentative settlement in another
of
these cases prior to going to trial. Doe Run is also a defendant in an asbestos
case filed in Lawrence County, Pennsylvania

Doe
Run
is in a commercial dispute with a buyer concerning one ocean shipment of lead
concentrates. Buyer is seeking reimbursement of expenses incurred to address
a
large amount of water that appeared during the voyage on top of concentrates
in
the forward holds. This contract dispute is in arbitration before the
LME.

Doe
Run
is a defendant in a lawsuit by Korea Zinc Co. and affiliates filed on January
19, 2006 in the Circuit Court of St. Louis County, concerning alleged violations
of an agreement regarding the sale of zinc concentrates. Doe Run disputes the
claim and will seek dismissal because the dispute should be subject to
arbitration.

Doe
Run
is a defendant in a lawsuit filed by Nadist, LLC in U.S. District Court for
the
Eastern District of Missouri on June 23, 2006 concerning the Sweetwater Mine
and
Mill. The lawsuit purports to constitute a citizen suit alleging violations
of
certain U.S. environmental laws and includes certain state law
allegations.

Doe
Run
has been named as a party in various lawsuits relating to certain operations
of
its predecessor. Fluor Corporation, the owner of Doe Run’s predecessor, retained
the obligation for any costs of defense or claims relating to these lawsuits.
Should Fluor Corporation become unable to fulfill its contractual obligation,
Doe Run could be liable for any costs or claims resulting from these lawsuits.
There is no reason at this time to believe that Fluor Corporation could not
fulfill its contractual obligations.

Doe
Run
Peru is currently a defendant in 207 lawsuits in the Lima, Peru labor courts
that allege damage to workers from industrial diseases. Doe Run Peru has made
claims in most of the cases against Centromin and has also made claims against
both governmental agencies and private companies that provide workers’
insurance. The average claim is $17. Of 19 previously concluded cases in this
category, 18 were dismissed and 1 resulted in an award of $9.

Doe
Run
Peru is also currently a defendant in 164 lawsuits by workers alleging that
they
are owed certain differences in salaries and benefits. The average claim is
$20.
Of 38 previously concluded cases in this category, 29 were dismissed and 9
resulted in awards totaling $19. Doe Run Peru is also a defendant in a lawsuit
by the Yauli-La Oroya Employees Union concerning salaries and benefits. The
claims of the 149 workers remaining in the lawsuit have been valued at a total
of $218 according to a report by an expert appointed by the court.

Doe
Run
Peru is also currently a defendant in 22 lawsuits alleging various labor claims
including indemnification for arbitrary dismissal, nullity of dismissal, moral
damage compensation, compensatory damages from work accident and readmission
of
worker. The average claim is $7. Of 30 previously concluded cases in this
category, 26 were dismissed and 4 resulted in awards totaling $21.

The
amount of awards in the various categories of lawsuits referenced above
represented total judgments issued by the relevant courts. For certain of these
lawsuits, Centromin will pay a portion of the total award.

On
January 19, 2005, Doe Run Peru was served with a lawsuit by an association
of
municipalities of the Junin Region of Peru against Doe Run Peru and two other
mining companies. This lawsuit alleges environmental damages to the Mantaro
River basin in the amount of $5 billion. On February 2, 2006, Doe Run Peru
was
served with a lawsuit by the municipality of Jauja. This lawsuit alleges
environmental damages to the Mantaro River basin in the amount of $5,000.
Material liability to Doe Run Peru, in these two actions, is believed to be
remote based on the opinion of management and outside counsel for Doe Run Peru.
Any potential judgment would be subject to the indemnification obligations
of
Centromin, which are guaranteed by the Peruvian government.

On
December 3, 2003, Doe Run Peru filed an administrative lawsuit against the
Yauli
- La Oroya Provincial City Hall in order to nullify and void a number of fines
for the amount of $2,800. Doe Run Peru was fined for not having construction
licenses for the PAMA projects.

Since
most of the above cases are either in the pleading or discovery stages, the
Company is unable at this time to estimate the expected outcome and the final
costs, except as noted, of these actions. No amounts have been accrued as
liabilities related to these actions. There can be no assurance that these
cases
would not have a material adverse effect, both individually and in the
aggregate, on the results of operations, financial condition and liquidity
of
the Company. The Company has and will continue to vigorously defend itself
against such claims.

(9)
Guarantor
Subsidiaries

The
Guarantor Subsidiaries (Fabricated Products, Inc. (“FPI”) and DR Land Holdings,
LLC (together with FPI, the “Domestic Guarantors”) Buick Resource Recycling
Facility, LLC, Doe Run Cayman Ltd. (“Doe Run Cayman”) and its subsidiary Doe Run
Peru) have jointly and severally, fully, unconditionally and irrevocably
guaranteed the 11.75% notes of the Company. Doe Run Cayman has no operations
separate from those of Doe Run Peru. Separate financial statements and other
disclosures concerning certain Guarantor Subsidiaries and disclosures concerning
non-Guarantor Subsidiaries have not been presented because management has
determined that such information is not material to investors. Intercompany
transactions eliminated in consolidation consist of various service and agency
fees between Doe Run and Doe Run Peru and sales of metal to Doe Run by Doe
Run
Peru and to FPI by Doe Run.